Risk-averse people prefer to hold assets whose returns are positively correlated
Indicate whether the statement is true or false
F
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Allocative efficiency occurs only at that output where
A. the areas of consumer and producer surplus are equal. B. marginal benefit exceeds marginal cost by the greatest amount. C. the combined amounts of consumer surplus and producer surplus are maximized. D. consumer surplus exceeds producer surplus by the greatest amount.
If the current interest rate increases,
a. the money demand curve shifts downward and the money supply curve remains unchanged. b. the money demand curve shifts upward and the money supply curve remains unchanged. c. there is a movement along the money demand curve and the money supply curve increases. d. there is a movement along the money demand curve and the money supply curve remains unchanged.
It costs a television manufacturer $1,000 to produce a plasma television. This manufacturer sells these televisions abroad for $750. This is an example of
A. dumping. B. a trade-related economy of scale. C. a negative tariff. D. an export subsidy.
Related to the Economics in Practice on p. 67: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.
A. demand; increase B. supply; decrease C. demand; decrease D. supply; increase